U.S. Treasury Cracks Down on Mexican Banks in Fentanyl Sanction Blitz

The U.S. Treasury has imposed restrictions on transactions with three Mexican financial institutions, CIBanco, Intercam Banco, and Vector Casa de Bolsa, as part of new measures under its Fentanyl Sanctions Act. The move intends to curb money laundering activities tied to drug cartels.

The Mexican finance ministry reacted by requesting evidence proving illicit activities from the U.S. Treasury, but did not receive any documentation. As part of the sanctions, American businesses are barred from engaging in transactions with these Mexican banks, effectively cutting a significant part of their U.S. financial system access.

The Treasury clarifies that the banks, despite being small by global standards, play a pivotal role in facilitating financial transactions for cartels involved in fentanyl production. This decisive action signals a continued U.S. commitment to combating drug money laundering despite existing trade tensions with Mexico.

(With inputs from agencies.)